India’s Gem and Jewellery Export Promotion Council (GJEPC) is calling on the country’s consumer protection authorities to adopt the U.S. Federal Trade Commission (FTC) guidelines for labeling lab-grown diamonds, aiming to align with international standards and rebuild trust in the diamond market.
Addressing Industry Concerns
In a recent stakeholder consultation organized by India’s Central Consumer Protection Authority (CCPA), critical issues were raised about the lack of standardized terminology and inadequate disclosure practices in the diamond sector.
“Consumers deserve to know exactly what they are paying for,” said CCPA chief commissioner Nidhi Khare, emphasizing how unclear labeling damages consumer trust in a market historically built on exclusivity and authenticity.
India’s current rules mandate that lab-grown diamonds must be labeled as synthetic, with their production method—whether high-pressure, high-temperature (HPHT) or chemical vapor deposition (CVD)—clearly specified.
A Call for Change
The GJEPC believes this labeling approach is outdated, pointing to global trends that favor terms like laboratory-grown or laboratory-created instead of synthetic diamonds. “India should embrace these modern terms to align with international markets,” said Smit Patel, convener of GJEPC’s lab-grown panel, in a bulletin published by Solitaire International.
Additionally, the GJEPC advocates for rules similar to the FTC’s, which clearly differentiate between natural and lab-grown diamonds. Under FTC guidelines, the unmodified term diamond or descriptors such as real, genuine, or natural apply exclusively to natural diamonds. Lab-grown diamonds must be labeled as laboratory-created or manufacturer-created to avoid misleading consumers.
Moving Toward International Alignment
In 2018, the FTC removed the word synthetic from its recommended terminology for lab-grown diamonds but did not prohibit its use. The FTC also eliminated the requirement to disclose specific production methods, focusing instead on clear labeling that promotes consumer understanding.
The GJEPC’s chairman, Vipul Shah, confirmed ongoing discussions with India’s consumer ministry, expressing optimism about rule changes that could enhance the country’s competitive edge in the global diamond market.